Stage 2 Capital

The most important question in the boardroom today is, "How will the value our company provides today be delivered in a post-AI world?" It was a pleasure to kick this topic around on the podcast of two industry moguls and Stage 2 Capital LPs, John McMahon and John Kaplan. Both were in executive roles during the last major B2B disruption (On-Prem to Cloud). Here are some considerations: (1) During the last tech shift 25 years ago, category leadership changed hands almost everywhere: GTM Tech: Siebel -> Salesforce.com HR Tech: PeopleSoft -> Workday ERP: SAP->Netsuite ITSM: BMC->ServiceNow Will category leadership change in the AI era? (2) The enterprise value of B2B tech companies grew from roughly $100B to $600B from 2000 to 2024. However, most of that growth was captured by Cloud-native companies that were not even started in 2000. Will new native AI companies capture most of the growth in the next two decades of B2B tech? (3) Only 48% of the companies on the S&P 500 list in 2000 are still on the list today. Of the top 10 most valuable companies in 2000, only 1 is still in the top 10 today. Will AI accelerate the pace of disruption? Whether the company is a pre-revenue startup or a $1B+ ARR mogul doesn't matter. In this new era, everyone is potentially vulnerable. Check out the episode here: https://lnkd.in/gS6JSku4

Founders: How do you introduce yourself to a new potential investor? What are the most important things to include in your pitch? This week, Stage 2 partner Sakib Dadi shares his perspectives on what he looks for in those early conversations. Here's what you need to know: Craft a Compelling Introduction: ✍️ Personalize your approach and show you've done your homework on the investor 🎯 Be clear and concise - Explain what your startup does in the first few sentences 🔗 Highlight relevance - Connect your company to the investor's portfolio or interests Prepare for the First Meeting: 💬 Start with conversation (consider skipping the slides) - Build a relationship first 📖 Know your story inside and out - Be ready to discuss naturally 🔍 Focus on your 'why', market opportunity, product, and customer focus Don't Overlook These Crucial Elements: 📈 What's working right now in your go-to-market strategy? ⏰ Why is now the right time for your product or service? 🎭 Who exactly are you solving a problem for? (Hint: It's not "everyone") Read more: https://lnkd.in/gSSqmZ_y Have any tips that you’ve learned along the way? Drop them in the comments below.

📬 DEAR STAGE 2: We have achieved early stages of Product Market Fit in our initial market with revenue steadily increasing over the past 3 years and have been working to expand our TAM and move into a new segment. How do I use data to effectively drive market expansion? ~EXPANDING TAM This week Liz (Cain) Christo Christo, Partner at Stage 2 Capital, tapped into the expertise of Javed Maqsood, Stage 2 Capital Limited Partner and GTM consultant, to share his framework for navigating market expansion. He emphasizes a data-first approach—analyzing what's already working and using those insights to build a stronger "GTM V2." 🔍 Step 1: Evaluate your current GTM strategy. What made it successful? Identify key areas like product features, marketing tactics, and sales processes that drove your initial wins. ⚙️ Step 2: Identify growth catalysts. What are the critical KPIs that signal potential in your new segment? Use this data to refine your approach. 🚀 Step 3: Develop and implement your GTM V2. Start with a narrowly defined segment, refine your ICP, and test a mini-GTM before scaling. You can read the full article here in this week's Dear Stage 2: https://lnkd.in/g3PZ3TTP

Our August update is here! Catch up on the latest content from Stage 2 Capital: 📈 Scaling your GTM team: Full-cycle vs. specialized sales roles 🎙 Mark Roberge's podcast: Building unicorn sales teams 🤝 Signs your startup may be ready for a COO or President 📰 Portfolio News: Webflow's new integration, DeepScribe's AI solution 💼 60+ job opportunities with our portfolio companies

How is AI changing GTM? Will AI replace sales? What trends are we seeing when it comes to hiring? Our partner Mandy Cole chatted with Dini M., former CRO at Lattice, current Executive in Residence at Peak XV Partners, and Stage 2 Limited Partner, to get her perspective. Her top observations? 1. Companies are doing more with less, cutting costs while in growth phase 💪 2. GTM teams are hiring smaller, more generalized "athlete" employees 🏃♀️ 3. AI is transforming GTM, but mainly by handling tedious tasks, not replacing sales people 🤖 Read the full article: https://lnkd.in/g5xuSPqF #GoToMarket #AIinSales #StartupStrategy

'We're coming out of stealth mode with a handful of design partners. How do we set our initial pricing for launch?' It’s tricky and there are so many mistakes made at this phase. Liz (Cain) Christo, Stage 2 Capital Partner tapped Peter Zotto, former Managing Director at Price Intelligently by Paddle and Co-founder of ProfitWell by Paddle to get his take on just how to approach the pricing conundrum. Peter emphasized one key piece of advice: selecting the right value metric. Tough to do in the early days, but if you can take the time to understand what they value you’ll be in a much better position to see continued sustainable growth. Peter's pricing advice: 🥅 Choose a metric that aligns with customer goals. For instance, a project management tool might price based on the number of projects created. Ensure it's easily understood. If customers struggle to grasp your pricing, they'll struggle to see the value. © Avoid blindly copying competitors. Many established players miss the mark on pricing - don't assume they've got it right. 📈 Design a metric that scales with customer growth. Read the full article for more detailed advice and examples: https://lnkd.in/gqMv8FDc 

Ever wish you had a wise friend to bounce your go-to-market ideas off? Every week, Liz (Cain) Christo, Partner at Stage 2 Capital, takes your questions and finds answers from top industry leaders. We’re always looking for new questions to tackle—got one? Drop it in the comments! Take a peek at a few of our most popular (recent) articles: 🎯 ABM for early-stage teams: Navigate with confidence (with Eric MacColl) https://lnkd.in/gFMdBMKF ➡ Founder-led GTM: Unlock rapid growth (with Maya Mikhailov) https://lnkd.in/gMe6jTXw 💼 Sales comp plans: Optimizing for your first enterprise reps (with Graham D. Collins) https://lnkd.in/gkV4kY6W Not subscribed to Dear Stage 2? It's your weekly dose of real, bite-sized GTM advice published every Saturday morning.  (you can sign up here: https://lnkd.in/g_a3M3_n) #GTM #SalesStrategy #StartupAdvice Dini M., Tanya Alfonso, Carol Meyers, Jacob Karp, Charlie Maier, Amy Volas, Jillian Kamiyama, Kyle Coleman

When's the right time for a startup to bring on a COO or President? Liz (Cain) Christo partner at Stage 2 Capital, chatted with Katie Bullard, President of Red Canary and seasoned tech leader, to get the scoop! Here's what we learned: 📊 Signs you might be ready: - CEO feeling spread too thin - Expanding to new geographic locations - Hitting that $100M ARR milestone 💡 Katie's advice for hiring: - Look for skills that complement the CEO's - Ensure long-term goals align - Build a relationship on trust and transparency 🔑 Pro tips: - Rethink the CEO's role - Consider the impact on your exec team - Seek advice from experienced mentors Read the full article on our blog --> https://lnkd.in/gwrfYC4h

What #AI tool do you swear by in your GTM strategy? We're gathering your insights for our upcoming article, From Hype to Help: AI Tools GTM Leaders Actually Swear By, and we want to spotlight your go-to. Got 60 seconds? Share it with us in a super quick 3-question survey! ⌛ https://lnkd.in/gMiRAfMT

📬 DEAR STAGE 2: What are the trade-offs between full-cycle reps and more specialized roles (AE, CS, onboarding, AM, etc.)? When should we consider having the same person play multiple roles? Is this more about the customer or stage of the company? A: Let's face it - we're all working with limited resources. The trick is to make the most of what you've got and put your time and money where it really counts. This week Liz (Cain) Christo Partner at Stage 2 Capital called on Stage 2 Limited Partner, Tanya Alfonso, to share her experience and unpack the pros, cons and considerations of full cycle reps v. specialized roles. 🔄 Full-Cycle vs. Specialized Roles: The GTM Evolution Key Takeaways: 🏗️ Full-Cycle AEs offer continuity: These reps own the entire customer journey, from initial contact to renewal. They're great for smaller organizations and maintain deep relationships, but may lack deep expertise in specific areas and face scalability challenges as the company grows. 🎯 Specialized Roles bring focused expertise: These roles focus on specific parts of the customer lifecycle, making recruitment easier and allowing for deep domain expertise. However, they can create silos, making handoff management and clear communication crucial. 🤔 Decision factors blend customer and company needs: Consider customer complexity, product intricacy, and lifetime value alongside your company's stage. Early-stage often favors full-cycle, while growth and mature stages benefit from increasing specialization. 💡 Success strategies evolve with your business: Start with full-cycle roles and specialize gradually, focusing on critical points in the customer journey. Be open about this evolution during recruiting and provide growth opportunities within new specialized roles. Remember: This isn't a one-time decision! 🔄 It's an ongoing journey that requires constant (re)evaluation and the company changes. Read the full article: https://lnkd.in/gK5zn9pk